Park Avenue House buyer is group led by Troy-based developer Mario Kiezi

Building listed for sale for $15 million; sale closing slated to happen next year

Annalise Frank/Crain's Detroit Business

The Park Avenue House was built in 1925 at 2305 Park Ave.

A Troy-based developer and his investors are in the process of purchasing the Park Avenue House downtown and turning it into an unspecified hotel.

Mario Kiezi confirmed that his MKiezi Investments is in the process of buying the 13-story building at 2305 Park Ave. at Montcalm Street, a week after a Detroit Free Press report first revealed residents of the 1925 building have been given 30-day eviction notices earlier this month.

Bill Nowling, a partner at Detroit-based public relations firm Lambert & Co. and a spokesman for Kiezi, said the sale of the building for an undisclosed price isn't expected to occur until the first quarter next year.

"The intention is to return that property to being a hotel," Nowling said Thursday afternoon. "We are not commenting on what flag will be there yet."

Nowling said the eviction notices for residents — many of whom are low-income — were issued by the property's seller.

"None of this talk of moving residents out in 30 days was any condition of any offer they put on the table," Nowling said. "That was the seller's sole action."

He said Kiezi and the investors want the seller, the Harringtons, to "back away from that notice" and give residents more time, probably until the end of June 2019. They met with Mayor Mike Duggan last week, who asked for more time for the residents, and the developer agreed, Nowling said.

"We don't want the residents to go anywhere, and we don't think the residents need to go anywhere right now," he said.

The Free Press also reported that the city is aiming to use $400,000, which includes $350,000 for the nonprofit United Community Housing Coalition, to help the vacating residents of the 180-room building.

Troy-based L. Mason Capitani Inc. has the listing for the property, which is being marketed for sale for $15 million, or $142.80 per square foot for the 105,000-square-foot building.

Messages sent last week to the listing broker were not returned. Crain's left a voicemail for property manager Sean Harrington.